[151531] in North American Network Operators' Group
Re: $1.5 billion: The cost of cutting London-Tokyo latency by 60ms
daemon@ATHENA.MIT.EDU (Robert Bonomi)
Fri Mar 23 17:58:12 2012
Date: Fri, 23 Mar 2012 16:57:44 -0500 (CDT)
From: Robert Bonomi <bonomi@mail.r-bonomi.com>
To: nanog@nanog.org
In-Reply-To: <4F6CC4E4.5000005@mompl.net>
Errors-To: nanog-bounces+nanog.discuss=bloom-picayune.mit.edu@nanog.org
Jeroen van Aart <jeroen@mompl.net> wrote:
> Valdis.Kletnieks@vt.edu wrote:
> >> The massive drop in latency is expected to supercharge algorithmic stock
> >> market trading, where a difference of a few milliseconds can gain (or lose)
> >> millions of dollars.
> >
> > But it should be illegal to run a stock market that volatile. This can't end well.
>
> The average consumer gets a 15 minute artificial delay in trading, why
> not implement for all trades...
Virtually any consumer can get true real-time trading data if they're willing
to pay some relatively modest fees for that access -- Last I knew, the most
expensive 'real-time' fee charged by any exchange was under $200/mo. For
everything traded on that exchange. For anybody doing short-term, 'tactical',
trading, that is a "petty cash" expense.
Imposing the 15-minute delay on 'everybody', would simply give the 'floor
traders' the -exclusive' edge on those trading strategies.
